Dealing with a Settlement crash!!!

My cousin sold his flat in Melbourne and settlement was suppose to be on Monday. He was informed by the conveyancers that there were some problems with the signatures of the buyers and that it might take another week. He was also informed that if it didnt go thru that he would have to put the flat back on the market.
He has already moved out and is renting and was relying on the settlement money to help him thru as he is experiencing financial strain.
My question is what can he claim for the settlement being held back, ie. mortgage payments: rent etc.
Also who is liable and what action if any can he take if settlement falls thru altogether and he has to place his home back on the market. I undertand that he gets to keep the 5% deposit minus all the fees from the agents and conveyancers?
Your imput is much appreciated!!!
Regards
John
 
I'm not trying to be rude at all but this is something he really should be discussing with his Solicitor. Without knowing all of the details, no one is able to provide you with an accurate aswer to your question.

Generally there should be penalty charges available, however this once again depends. If the contract is terminated by a breach of the purchaser, legal rememedies should be available to seek damages.
 
Unfortunately in this instance it would have been better for your cousin to deal with a solicitor rather than a conveyancer.

However, get him to ask as many questions as he can from the conveyancer as possible. See what the conveyancer says?

I feel for your cousin though, I wonder what happened to crash the settlement??
 
No progress at yet!

Hi all,
Thanks for the imput.
Well where it stands at the moment is that the second settlement date that was scheduled didnt go thru and so the conveincers have given the other party 2 weeks to resolve and then if it isnt, the property will be placed back on the market.
The conveincers claim that they are not sure as to what the hold up is. I suspect that the buyer is not able to come up with the funds, as the real estate agents let some valuators thru the property only days ago.

Anyway shall keep you all up to date and thanks once again for the imput.
John
 
You might have trouble getting any penalties paid if the purchaser is having dificulties with finance. Sometimes its better to just rip the bandaid off, and issue a rescission notice and put the property back on the market. They still have 14 days after a rescission noticed is issued to settle, so it might just be the incentive they need to move faster....
 
You can obviously get the deposit being they aren't able to settle.

I'm sure your cousin will be fine.

Put it this way - if it is already an unconidtional sale - you have the rights to take the 10% minus agent commission fees being the purchaser is unable to proceed with the sale.

And then imagine you can sell it again on top of that. Basically - you're sort of making more on top of what you would have.
 
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